May 30, 2009

Minnesota Budget Cuts Will Impact Courts and Consumers

Budget Cuts for Minnesota Courts

The news from the Governor’s Desk is quite mixed for the judicial system. The budget signed into law from Governor Pawlenty did contain some minor budget cuts for the Minnesota Courts. The Courts were already operating on a very slim budget, so the cuts will affect services. To minimize the impact on consumers of judicial services, the Courts intend to implement some fairly significant increases in filing fees.

No Sales Tax on Legal Services

Also on the legislative radar this year was the imposition of a sales tax on legal services. It did not pass. Such a tax would have presented a great hardship to individuals seeking legal representation. Not only would the tax have increased every legal bill in Minnesota by the sales tax percentage, but it would have increased overhead for attorneys who are unaccustomed to sales tax reporting and collections. Overhead is the primary determinant of the price of legal services.